- While we await the New Zealand merchandise trade data that is due out at 10:45 am local time, 21.45 GMT.
- The current state of play is that that the Kiwi dropped overnight on broad USD strength across the G10.
- US stocks keep bleeding, bad for risk sentiment.
The pair moved from to the 38.2% fibo retracement of the recent leg from Oct lows to recovery highs of 0.6612 to the 50% retracement at 0.6518. This has broken a trend line support as well.
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ANZ Bank New Zealand Analyst’s comment:
Analysts at ANZ Bank New Zealand explained, however, that today’s trade data is unlikely to have a lasting impact on the currency and financial market volatility, particularly with equities suggesting NZD will remain under pressure in the short term.
NZD/USD levels
- Support 0.6460
- Resistance 0.6620
The 50% retracement is key and bears can now target 0.6505 that opens S3 located down at 0.6459 and the 23.6% Fibo (20th Sep/7th Oct range) located at 0.6489. However, a break of the descending channel’s resistance line and 0.66 the figure opens the room to 0.6634 as the 76.4% Fibo target, (20th Sep/7th Oct range).
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